Correlation Between Oppenheimer Holdings and Enlivex Therapeutics

Can any of the company-specific risk be diversified away by investing in both Oppenheimer Holdings and Enlivex Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Oppenheimer Holdings and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oppenheimer Holdings and Enlivex Therapeutics, you can compare the effects of market volatilities on Oppenheimer Holdings and Enlivex Therapeutics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Oppenheimer Holdings with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Holdings and Enlivex Therapeutics.

Diversification Opportunities for Oppenheimer Holdings and Enlivex Therapeutics

0.07

Correlation Coefficient

Oppenheimer Holdings  Enlivex Therapeutics

Significant diversification

The 3 months correlation between Oppenheimer and Enlivex is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Holdings and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and Oppenheimer Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Oppenheimer Holdings are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of Oppenheimer Holdings i.e., Oppenheimer Holdings and Enlivex Therapeutics go up and down completely randomly.

Pair Corralation between Oppenheimer Holdings and Enlivex Therapeutics

Considering the 90-day investment horizon Oppenheimer Holdings is expected to under-perform the Enlivex Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Oppenheimer Holdings is 2.28 times less risky than Enlivex Therapeutics. The stock trades about -0.06 of its potential returns per unit of risk. The Enlivex Therapeutics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  115.00  in Enlivex Therapeutics on December 30, 2024 and sell it today you would lose (13.00) from holding Enlivex Therapeutics or give up 11.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Oppenheimer Holdings  vs.  Enlivex Therapeutics

Oppenheimer Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oppenheimer Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Enlivex Therapeutics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enlivex Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Enlivex Therapeutics is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Oppenheimer Holdings and Enlivex Therapeutics

The main advantage of trading using opposite Oppenheimer Holdings and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Holdings position performs unexpectedly, Enlivex Therapeutics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Enlivex Therapeutics will offset losses from the drop in Enlivex Therapeutics' long position.

The idea behind Oppenheimer Holdings and Enlivex Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.